Changes in Global Coffee Prices – Impact on the Georgian Market

Coffee culture is particularly diverse across the world, with many countries having unique traditions associated with this beverage. Coffee, as one of the most popular drinks globally, is not just a culinary experience but also an important economic resource that significantly impacts international trade and the global economy. Recently, the price of coffee on the global market has risen sharply, altering its economic and cultural significance.

Coffee culture and consumption are globally significant phenomena. Coffee is one of the most consumed beverages in the world, and the traditions of its consumption vary widely between countries. For example, in Italy, coffee culture is linked to espresso, which is consumed quickly as part of Italians’ daily routines. Meanwhile, in France, coffee is typically enjoyed over a longer period, adding a more social element to coffee culture.

In the United States, there is a “to-go” coffee culture that reflects the fast-paced American lifestyle. In the U.S., coffee often becomes an integral part of social and work environments, where its consumption is linked to productivity. In Scandinavian countries like Finland and Sweden, coffee consumption is more ritualized, known through the “fika” tradition, where coffee is enjoyed with relaxation and communication among friends.

Globally, the largest coffee producers include Brazil, Vietnam, and Colombia, who are the main suppliers of coffee beans. Brazil, in particular, is the largest producer on the global market, and its harvest volume significantly influences global prices. Recently, especially during the 2024-2025 season, a drought in Brazil severely affected the harvest, leading to an increase in global coffee prices.

In 2024, coffee prices on world markets rose significantly. According to data from Tradingeconomics, the price of Arabica futures is $2.6 per pound, indicating a 76% year-on-year increase and a 5.8% increase over the past month. One of the main reasons for the rise in coffee prices is the fear of a poor harvest in Brazil. Brazil is the largest supplier of coffee beans, and the prolonged drought has severely damaged plantations, prompting importers to increase demand and, consequently, prices.

The rise in coffee prices globally affects both producers and consumers. Besides Brazil, climate change is also impacting Vietnam and Colombia, further exacerbating global coffee supply issues. The reduction in harvests and supply limitations raise the market value of the product, which ultimately affects the price of coffee for consumers.

The increase in coffee prices has also been felt in Georgia. In the period from January to August 2024, Georgia purchased 4,945 tons of coffee worth $24.3 million, a significant increase compared to the same period last year. In 2023, during the same period, the country bought 5,050 tons of coffee worth $19.9 million, indicating a reduction in the volume of imported coffee but an increase in its price.

According to data from last year, the average import price of 1 kg of coffee, excluding taxes, was $3.9, while in 2024, this price rose to $4.9. Consequently, the average import price of coffee increased by 25%. This change is also reflected in retail prices. A few months ago, the price of one kilogram of ground, unpackaged coffee was at least 28 GEL, but now the minimum price is already 32 GEL.

It is important to note that coffee consumption in Georgia differs from other countries. In Georgia, the average consumption per capita is about 1.8 kg per year, which is relatively low compared to other countries globally. For example, in Finland, one of the world’s largest consumers of coffee, per capita consumption exceeds 12 kg per year. In Germany, this figure is 5.5 kg, while in the U.S., it is 4.5 kg. These figures indicate that coffee consumption in Georgia is relatively low, which may be due to economic factors and the less widespread coffee culture.

The increase in coffee prices on the Georgian market is mainly linked to global factors, including crop damage in Brazil and global supply chain problems. At the same time, rising prices on Georgia’s domestic market are related to increased import costs, which ultimately affect consumers.

The global coffee market and its prices have a significant impact on both producing and consuming countries. According to 2024 data, the increase in coffee prices on global markets is primarily due to climatic conditions that negatively affect the quantity and quality of the harvest. The prolonged period of drought in Brazil, along with climate issues in other producing countries, has significantly raised coffee prices, which in turn affects global demand and prices.

In Georgia, the rise in coffee prices is directly linked to global trends. Despite the fact that coffee consumption is not as deeply integrated into Georgian culture as it is in Italy or Scandinavian countries, demand for coffee consumption continues to grow. Moreover, the relatively low per capita consumption of coffee in Georgia indicates that there is still potential for growth in coffee consumption, especially if the price becomes more affordable for consumers.

In the future, changes in coffee prices may depend on global climatic conditions, economic trends, and the stability of international markets. For Georgia, it is important to find diversified import sources to reduce the impact of global shocks on the domestic market and to ensure that the price of coffee remains relatively stable for consumers. At the same time, the development of coffee culture in the country and its promotion can stimulate consumption growth, which, in turn, may positively impact the local economy.